Re-Structuring, Re-Engineering, And Redundancy

Re-structuring, re-engineering, and redundancy are words that you hear in management circles and among members of the leadership team of an organization every once in a while.

The three words are actually different ways of expressing the same thing.

Re-structuring is exactly what it says. It means top management or the leadership of the organization have reached a decision to change the structure of the organization.

Top management may feel that the current structure limits competitiveness because . . .

1. It promotes a culture of irresponsibility

2. Inhibits creativity

3. Allows for excessive bureaucracy that slows progress

4. Is expensive to run

5. It makes the organization FAT and SLOW and, thus, irresponsive to changes in the market place or customer requirements

To stay fit and competitive, this kind of organization needs to re-engineer the organization by collapsing the structure to dispel bureaucracy and promote growth.

Most management leadership in today's fast paced business world prefer an organization that is LEAN and FAST.

That makes sense, of course.

The consequence of this re-structuring or re-engineering is that some jobs may be merged and lines of reporting may change.

The bad part . . . some jobs may become redundant.

In simple words, re-structuring or re-engineering may lead to job disappearance, job cuts, lay offs and redundancy.

Re-engineering or restructuring is great for the organization because it may lead to greater profitability. But it is bad news for the individuals who lose their jobs as a consequence of this decision.